Or a split-the-difference compromise
“This is my last offer"
There’s an offer
“My final offer, and it’s too much"
“$50,000 is the best we can do. If that does not work for you, we will move our operations—and the security we provide—to the community down the road.”
“This is my truly final offer"
There's a counter offer
A Threat
“We’d settle for $80,000.”
"Well this is MY last offer"
“I know how much you need our help, and imagine if I went to your commanding officer and told him how uncooperative you are, he’d gladly pay us more.”
Or a split-the difference compromise
The positional bargaining approach to negotiation is pervasive. There is no need to look further than the front page of any newspaper to witness the positions taken, anchoring, posturing, and (often escalating) threats made in budget or bill negotiations in the U.S. government, treaty negotiations at the United Nations, or policy negotiations within the European Union. One explanation for the prevalence of positional bargaining is its simplicity – everyone knows the rules and it is easy to play the game. In fact, it is the very first (and for many last) lesson we learn in how to negotiate. Read on to learn more about positional bargaining.
“That’s ridiculous, but as a favor to you we’d consider an agreement at $40,000.”
"Seriously, my last final offer"
“There’s no need for that. How about 60?”
"Ditto, and it won't get better"
POSITIONAL BARGAINING
Counter-Threat
“How about 75?”
No Deal
(Go to BATNA)
REPLAY
“OK, 70, but that’s my final offer.”
"My final offer, and it's too much"
A Walk Out
(Temporarily)
A Threat
IDENTIFYING AND CHALLENGING ASSUMPTIONS
“We have a deal."
A Counter-Threat
next
RETURN TO TOP
There's an offer
POSITIONAL BARGAINING
No Deal
(Go to BATNA)
You've reached the end of the
Scroll to Continue
A Walk Out
(Temporarily)
"This is my truly final offer"
POSITIONAL BARGAINING: AN EXAMPLE CASE
Please plug in your headphones
There’s a counter offer
READY
“Seriously, my last final offer"
“If you want our cooperation, you need to pay us $100,000.”
“Ditto, and it won’t get better"